By SILUMESI MALUMO
PLACING Konkola Copper Mine (KCM) under liquidation does not mean government wants to take over operations but wants to pay off the creditors their dues, Lusaka lawyer Makembi Zulu has said.
Mr Zulu explained that Vedanta Resources Limited had failed to meet its obligations to credits and that putting it under liquidation was the only way they could be paid.
Mr Zulu, who is also Eastern Province Minister said government was not taking over the running of the mines and appealed to people against misinterpreting facts.
He clarified that government could only take over the mining company’s operations through nationalisation.
Mr Zulu said Government was only interested in getting its dues from KCM and not taking over operations.
“ZCCM-IH is the one which has commenced proceedings against KCM, and reason for petitioning is that the company has failed to meet its financial obligations. Just like any other person can commence action for liquidation on the basis that this particular company is failing to meet obligations,” he said.
Mr Zulu said, “Now you need to convince the court that the company has failed to meet its obligations and if the court get satisfied that the company has really failed my place the company under liquidation.”
“So it is not an executive act as it were but it is an act that the court has seen fit to place the company under liquidation because it already has all the evidence,” he said.
Mr Zulu said this is the only process the creditors could secure their interest because they had been paid by the debtor.
He said that a number of companies on the Copperbelt claimed that KCM had failed to pay them their dues, and therefore it was in the best interest of the liquidator to act in the best interest of creditors.